Corporate Snapshot Strategy Sustainable Yield + Disciplined Growth Focus High quality, large oilinplace reservoirs Symbol TSX : TOG Average Daily Volume (1) 1.3mm shares Basic Shares Outstanding 93mm Market Capitalization /…
Foundation of TORC Building an Oil Platform for Growth Focus on reserves, production and cash flow per share growth over the long term Operational excellence Maintain strong, flexible balance sheet Unique strategic and…
Life Cycle of Resource Exploitation Cardium SE SK Conventional Development Infill / Secondary / Tertiary Recovery Repeatability Resource Capture Three Forks / Monarch Exploration / Delineation Torquay TORCs…
Light Oil Asset Base Significant inventory for continued organic growth 275 net undrilled locations Cardium: (significant lower risk Operated production base allows for control of development pace and growth plan development…
Cardium Development
Cardium Trend Significant Undrilled Development Inventory West Pembina Cardium Trend Large OilinPlace:1 5 mmbbls / section Land: 90 net light oil sections Depth: 1600 2000m Oil Quality: 40 API sweet Well Spacing: 4 wells /…
Monarch Prospect Exposure to Light Oil Opportunity for StepChange in Value
Monarch Prospect Large OilinPlace Exposure Central Monarch Development Area Monarch Large OilinPlace:1 1 billion bbls (1015 mmbbls/section) Land: 150 net sections Depth: 1750 3500m Oil Quality: 30 43 API Well Spacing: 4…
Monarch Prospect Central Monarch Development Area Economic Parameters 300mbbls 425mbbls DCE&T (mm) 7.0 7.0 Capital Efficiency (/boepd) 27,560 19,500 Reserve Cost (/boe) 23.35 16.50 Rate of Return (%) 26% 67% Operating…
Southeast Saskatchewan Cash Flow Generation Plus Upside Potential
SE Saskatchewan Conventional Cash Flow Generator SE Saskatchewan Large OilinPlace:1 Conventional Pools 5 100+ mmbbls Land: 250 net sections (150 net undeveloped sections) Depth: 1000 2000m Oil Quality: 30 40 API Well…
SE Saskatchewan Three Forks / Torquay Upside Economic Parameters 1 Mile Well DCE&T (mm) 4.0 IP (365) (bopd) 108 Reserves (mbbls) 175 Capital Efficiency (/boepd) 37,040 Reserve Cost (/boe) 22.90 6 miles NPV 10 (mm) 4.6…
Financial & Economic Overview
2014 Capital Program Disciplined Growth + Sustainable Dividend Objective Action 29 (17.93 net) Cardium wells Cardium: Growing into free cash flow 55% of core capital Capital approximately equates to cash flow in 2014 3 (3 net)…
Sustainability Analysis Sustainability Highlights Sustainability Sustainability Analysis Run rate production of 11,400 boe/d Production ( 85% oil & NGLs) Run Rate Production boepd 11,400 Decline Rate % 25% 2014 corporate decline…
Sustainability Plus Disciplined Growth Edm Lt (C) Run Rate = 11,400 boepd 75 80 85 90 95 100 105 110 Run Rate Cash Flow mm 138 153 167 182 197 212 227 242 Maintenance Capex mm 114 114 114 114 114 114 114 114 Dividend mm 38 38 38…
Low Decline Production Base 5 Year Base Production Decline Profile Key Highlights Mature production base Annual Decline Yr Decline 1 25% 2 15% Current 25% decline 3 13% 4 12% 5 11% Managing decline is key in growth + dividend…
Conservative Reserve Base P+P = 51(1) mmboe (80 % Oil + Liquids) Reserves by Area (1) Three Forks/ Torquay, 45% PDP 1% SE Sask Conventional, Cardium, 50% 44% 23 mmboe 28 mmboe Monarch, 5% 1) Sproule Dec. 31, 2013 of…
Balance Sheet Strength 375mm bank line 50% undrawn YearEnd 2013 Bank Facility 375mm Net Debt at June 30, 2014 181mm Debt to RunRate Cash Flow 1.0x Strong Financial Position Debt to EV 15% Leverage with D/CF of 1.0x…
Hedging Program Oil Hedges Average Floor Prices 60% 100.00 93.53 90.71 90.00 50% 90.00 C WTI Average Floor Price 40% 80.00 37% 30% % Hedged 30% 70.00 20% 14% 60.00 10% 0% 50.00 H2 2014 H1 2015 H2 2015…
Dividend + Disciplined Growth Model Checklist Sustainability of business model driven by: Decline Rate 25% Operating Netback 50 Capital Efficiency Allin IP 365 40,000 / boepd Strong Balance Sheet 1.0x debt / cash flow…
Summary
Investment Highlights Low Decline, High Netback Production Base Focused light oil asset base Sustainable Yield Allin payout ratio below 100% Opportunity for CPPIB to support future growth and / or M&A Strategic Relationship…
Corporate Information Management Independent Reserve Engineers Analyst Coverage Brett Herman Sproule Associates Limited BMO Capital Markets President & Chief Executive Officer Jim Byrne Canaccord Genuity Jason Zabinsky Banks Anthony…
Hedging Program Current Hedge Summary Volume (Bbl/d) Type (C/Bbl) Index Low High Aug 1, 2013 Jun 30, 2014 500 Collar 95.00 109.30 CWTI Aug 1, 2013 Jun 30, 2014 500 Collar 100.00 107.00 CWTI Aug 1, 2013 Jun 30, 2014 500 Swap 103.75…
Significant Cornerstone Investment from CPPIB CPPIBs Relationship Investments group provides longterm strategic capital to select companies CPPIB believes are positioned to be leaders in their respective industries Ownership of 25%…
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